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Blueprint for Mid Career Savers: Building a Resilient Retirement Withdrawal Plan Now

Mid-career savers ages 40–55 with $100,000–$400,000 can start building a resilient withdrawal system now. A resilient plan will be able to adapt to markets, taxes and aging through retirement. Establishing your core withdrawal plan now is essential because it gives you a playbook you can test before retirement day. 

That can mean you don’t have to guess during economic fluctuations what your retirement withdrawal strategy should be, especially if you work with your financial advisors to create your plan. 

Developing your strategy also helps you avoid overspending in good markets and making panic cuts to spending in faltering markets. Since you set rules that are flexible but disciplined, your plan also coordinates taxes, Social Security timing and portfolio rebalancing or restructuring.

Work with your financial advisor to plan elements like those described below to help ensure your retirement money lasts as long as you do.


Set Flexible Withdrawal Targets That Can Evolve Over Time

Start by targeting a withdrawal rate between 3.7% and 5% in retirement. Recent research suggests 3.7% as a prudent starting point for new retirees.1 This rate considers expected market performance and helps protect against both market volatility and inflation over time.

Your withdrawal strategy should remain adaptable throughout retirement. Some retirees can increase their withdrawals up to 5% during strong market periods, provided they're willing to monitor their portfolio carefully and adjust their spending when necessary.2

The key is using dynamic withdrawal rules rather than fixed amounts. When markets decline, temporarily reduce withdrawals to preserve your nest egg. During market upswings, you can potentially take slightly higher withdrawals. 

This flexibility helps protect your savings during downturns by giving your portfolio time to recover from market losses. It's particularly important because withdrawing money after market drops can permanently reduce your future balance, even after markets rebound.3


Create Liquidity Tiers to Weather Market Cycles

A three-tier "bucket" approach helps protect your retirement savings during market ups and downs by organizing your money based on when you'll need it. Here's how to structure each tier:


Bucket 1 (Near-Term)

Financial experts recommend setting aside two to four years of essential living expenses in stable, low-volatility assets. This cash cushion helps protect against having to sell investments during market downturns. Place this money in secure vehicles like money market funds, CDs and short-term bonds to cover your immediate spending needs.4


Bucket 2 (Mid-Term)

Create "ladders" with bonds or CDs to manage the next phase of expenses. 

A bond ladder involves purchasing multiple bonds with staggered maturity dates, like having one bond mature each year over a five-year period. This provides regular opportunities to reinvest at current interest rates or access cash as needed.5

Similarly, CD laddering lets you take advantage of higher interest rates while maintaining flexibility. When each CD matures, you can reinvest it or use the funds.6


Bucket 3 (Long-Term)

For money you won't need for at least a decade, create a growth-focused portfolio that can help outpace inflation. An approach that may work best involves considering dividing your assets into these tiers:

  • Keep one to two years of expenses in liquid assets.
  • Place two to 10 years of expenses in bonds or fixed-income investments.
  • Invest the remainder in stocks for long-term growth.7
  • Consider adding annuities for guaranteed income streams, but be mindful of their complex fees and restrictions.
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Establishing your core withdrawal framework gives you a playbook you can test before retirement day.

This three-bucket system helps you stay calm during market downturns since you know your immediate and near-term needs are safely covered while giving your long-term investments time to recover and grow.


Sequence Withdrawals to Minimize Taxes and Maximize Longevity

The order you withdraw from your retirement accounts can significantly impact how much money you keep and how long your savings last. Following a strategic withdrawal sequence helps reduce taxes while preserving your wealth's growth potential.8

Consider starting with withdrawals from regular savings and investment accounts. This lets tax-deferred accounts like IRAs and 401(k)s continue growing longer. The taxes you pay when taking money from regular accounts may be lower than withdrawing from retirement accounts.8

Next, experts suggest you tap your tax-deferred accounts like traditional IRAs and 401(k)s. Since you must start taking required minimum distributions (RMDs) from these accounts at age 73 (or 75 if born after 1960), it makes sense to withdraw from them before touching your Roth accounts.8

This strategy becomes especially important when planning for Medicare costs, since your income level affects your premiums through income-related monthly adjustment amount (IRMAA) surcharges.9

Save Roth accounts for last, since they offer tax-free growth and withdrawals with no RMDs. This approach provides flexibility later in retirement and can help reduce your overall tax burden. You might also consider converting some traditional IRA money to a Roth during years when you're in a lower tax bracket. This can help minimize future RMDs while creating more tax-free income options.10


Integrate Social Security Timing Into Your Broader Income Strategy

Consider how your Social Security benefits affect your other retirement income to make smarter withdrawal decisions. Your "provisional income" – which includes half of your Social Security benefits plus other taxable income and tax-exempt interest – determines how much of your benefits get taxed.11

Tax rates on provisional income vary by income and filer type. For single filers with provisional income between $25,000 and $34,000, up to 50% of benefits could be taxable, while those with income above $34,000 may have up to 85% taxed. For married couples filing jointly, these thresholds are $32,000 to $44,000 for the 50% level and above $44,000 for the 85% level.12

The years before you claim Social Security present unique planning opportunities. If you delay benefits until age 70 to maximize your monthly payment, consider using those "gap years" to do partial Roth conversions. This strategy can reduce future required minimum distributions that might push you into higher tax brackets once benefits begin. 

Timing matters because large Roth conversions during years you receive Social Security could inadvertently increase the portion of your benefits subject to tax by raising your provisional income.13

Keep in mind some states also tax provisional income in retirement. So, check to see if your state does.14


Review and Rebalance to Keep Your Plan on Track

Review your retirement portfolio's performance and asset allocations with your financial advisor at least annually, with optional quarterly check-ins if you prefer more frequent updates. 

After major market movements, consider rebalancing your portfolio by selling a portion of your best-performing investments and buying more of the underperforming ones. This strategy essentially helps you “buy low and sell high” automatically while preventing any single investment from becoming too large a portion of your portfolio.15

This may return your portfolio to your target mix and help maintain your desired balance between growth and stability. This disciplined approach can help manage risk and take the emotion out of investment decisions.15

Use each annual review with your financial advisor to plan your coming year's withdrawals to help ensure you maintain adequate cash savings. After periods when the market performs well, you might consider taking money from investments that have increased in value. 

These reviews also provide opportunities to consider tax-planning strategies that may benefit your situation. Have your advisor help you examine all your options, because there are many and yours may differ substantially from someone else’s.

Consider asking your financial professional to help analyze how your retirement plan might handle different market conditions, including potential market downturns. Understanding how your savings might perform in various scenarios can help you identify and address potential risks while you still have time to adjust your withdrawal approach.

As you develop your retirement withdrawal strategy, you may want to explore additional techniques for strengthening your plan. Contact a Synovus financial planner to learn more.

Important disclosure information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Amy Arnott and Ivanna Hampton, “Retirees, here’s how to tweak the 4% rule to protect your nest egg,” AP, July 18, 2025. Accessed October 14, 2025. Back
  2. Wes Moss, “Can You Safely Withdraw 5% In Retirement? A New Twist In The Debate,” Forbes, March 20, 2025. Accessed October 14, 2025. Back
  3. Sarina Trangle, “Worried about Retiring in a Market Slump? Here's What Experts Suggest You Do Now.,” Investopedia, April 9, 2025. Accessed October 14, 2025. Back
  4. Lucy Lazarony, “Stressed About Retirement? Here Are 3 Expert-Backed Steps You Can Implement Right Now,” Investopedia, August 29, 2025. Accessed October 14, 2025. Back
  5. James Chen, “Bond Ladder: Overview, Benefits, and Examples,” August 24, 2025. Accessed October 14, 2025. Back
  6. Jessica Gibson, “Why CD Laddering Could Be the Best Move for Your Savings in 2025,” Investopedia, January 31, 2025. Accessed October 14, 2025. Back
  7. Donna Fuscaldo, “The Retirement Bucket Rule: Your Guide to Fear-Free Spending,” Kiplinger, August 4, 2025. Accessed October 14, 2025. Back
  8. Marc Knauss, “In What Order Should You Tap Your Retirement Funds?,” Kiplinger, November 20. 2024. Accessed October 14, 2025. Back
  9. Donna LeValley, “Medicare Premiums 2025: IRMAA Brackets and Surcharges for Parts B and D,” Kiplinger, August 6, 2025. Accessed October 14, 2025. Back
  10. John Waggoner, “Ease the Tax Bite When You Tap Retirement Accounts,” Kiplinger, January 27, 2025. Accessed October 14, 2025. Back
  11. Julia Kagan, “Provisional Taxes: What They Are and How They Work,” Investopedia, August 31, 2025. Accessed October 14, 2025. Back
  12. Kelley R. Taylor, “How to Calculate Taxes on Social Security Benefits in 2025,” Kiplinger, April 28, 2025. Accessed October 14, 2025. Back
  13. Kelley R. Taylor, “Seven Ways to Reduce Taxes on Social Security Benefits in 2025,” Kiplinger, February 26, 2025. Accessed October 14, 2025. Back
  14. Kate Schubel, “States That Tax Social Security Benefits in 2025,” Kiplinger, June 22, 2025. Accessed October 14, 2025. Back
  15. Emily DiNuzzo, “How to Rebalance Your Portfolio to Minimize Risk,” Investopedia, May 28, 2025. Accessed October 14, 2025. Back